China Evergrande Says Construction Has | Stock Market News Today


Troubled property developer

China Evergrande Group


EGRNF -10.55%

said construction work has resumed at more than 90% of its stalled residential projects, adding that it has picked up the pace of delivering apartments promised to home buyers across the country.

Evergrande,


EGRNF -10.55%

in a statement Sunday night, said more than 80% of its suppliers of materials and decorative services have “resumed cooperation,” and that it has signed thousands of new contracts with various suppliers. At the end of August, the developer disclosed that construction had been suspended at some projects after it fell behind on payments. And by October, hundreds of Evergrande’s unfinished developments were affected by work stoppages.

With just a few days to go before the end of 2021, Evergrande said it intends to deliver 39,000 homes in 115 projects to buyers across China in December. It compared that to its completion of fewer than 10,000 units in each of the preceding three months.

The world’s most indebted real-estate firm Evergrande has embarked on a social media campaign to show construction has resumed and says it’s doing whatever it takes to deliver homes. WSJ compares these posts with ones from upset buyers. Photo Composite: Emily Siu

In a post on social media Monday, Evergrande said apartment projects have been handed over in batches in 18 provinces and it released photos of completed buildings adorned with bright red decorations and people signing papers to take ownership of their homes.

Despite this, Evergrande still has many more commitments to fulfill and its debt crisis remains unresolved. The 25-year-old developer used to be one of the country’s largest by contracted sales and is on the hook to deliver units to more than one million people. Many buyers made large down payments on unfinished flats, expecting to take ownership of them in a few years.

Hui Ka Yan,

Evergrande’s founder and chairman, said that “under the care and guidance of governments at all levels,” as well as support from partners, financial institutions and other constituents, the developer has made progress in its commitments to homeowners.

He added that Evergrande would do whatever it takes to resume work and deliver homes and predicted that the firm will eventually be able to “resume sales, resume operations, and pay off debts.”

Hui Ka Yan, China Evergrande’s chairman, in Hong Kong in 2019.



Photo:

Paul Yeung/Bloomberg News

The company’s statement followed comments over the weekend from two Chinese regulators which said they would safeguard the rights of homeowners and keep the property sector stable. Beijing has been trying to prevent Evergrande’s debt crisis from hurting the many small businesses and ordinary citizens that the developer owes money and apartments to.

Wang Menghui,

head of China’s Ministry of Housing and Urban-Rural Development, said in an interview with the state-run Xinhua News Agency that the regulator will address the risks of some leading developers that fail to deliver projects on time, with the goal of “guaranteeing home deliveries, protecting people’s livelihoods and maintaining social stability.”

The People’s Bank of China separately said—as part of a wide-ranging statement on the economy—that it would protect the rights and interests of homeowners and promote the healthy development of the country’s real-estate market.

Evergrande, the world’s most indebted developer, has been struggling under the weight of roughly $300 billion in liabilities, including around $20 billion in international bonds. The developer has missed payment deadlines on some of its dollar bonds, setting the stage for a massive and complex restructuring. Major credit raters have declared it to be in default.

Earlier this month, the conglomerate sought help from the government of its home province, Guangdong. It has since set up a risk-management committee that includes representatives from several state-backed entities.

Evergrande recently said the committee is working to help contain its risks and will engage with its creditors. Some international bondholders, however, have said there has been little communication from the company so far, the Journal reported last week.

The company’s Hong Kong-listed shares have plunged in value this year to historic lows and its dollar bonds are trading at deeply distressed levels. Markets in Hong Kong were closed Monday for a public holiday.

Write to Anniek Bao at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Tagged : / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /

Elon Musk Slammed Online by Chinese – Latest news headlines


Chinese citizens lashed out online against billionaire Tesla founder Elon Musk’s space ambitions on Monday after China complained that its space station was forced to take evasive action to avoid collision with satellites launched by Musk’s Starlink programme.

The satellites from Starlink Internet Services, a division of Musk’s SpaceX aerospace company, had two “close encounters” with the Chinese space station on July 1 and October 21, according to a document submitted by China earlier this month to the UN’s space agency.

“For safety reasons, the China Space Station implemented preventive collision avoidance control,” China said in a document published on the website of the United Nations Office for Outer Space Affairs.

The complaints have not been independently verified. SpaceX did not immediately respond to a request for comment.

In a post on China’s Twitter-like Weibo microblogging platform on Monday, one user said Starlink’s satellites were “just a pile of space junk”, while another described them as “American space warfare weapons”.

With nearly 30,000 satellites and other debris believed to be orbiting the planet, scientists have urged governments to share data to reduce the risk of catastrophic space collisions.

SpaceX alone has deployed nearly 1,900 satellites to serve its Starlink broadband network, and is planning more.

“The risks of Starlink are being gradually exposed, the whole human race will pay for their business activities,” a user posting under the name Chen Haiying said on Weibo.

US space agency NASA was forced to abruptly call off a spacewalk at the end of November, citing risks posed by space debris. Musk tweeted in response that some Starlink satellite orbits had been adjusted to reduce the possibility of collisions.

China began constructing the space station in April with the launch of Tianhe, the largest of its three modules. The station is expected to be completed by the end of 2022 after four crewed missions.

Musk has become a well-known figure in China, though Tesla’s electric-vehicle business has come under growing scrutiny from regulators, especially after a customer climbed on top of a Tesla car at the Shanghai auto show in April to protest against poor customer service.

© Thomson Reuters 2021




Source link

Tagged : / / / / / / / / / / / / / / / /